Trading broadly means buying and selling various products in the financial market, such as, stocks, foreign exchange, contracts for difference (CFD), commodities, indices etc. With the launch of high-end trading platforms, a novice can also engage in trading. However, as in the case of any market where prices fluctuate an unwary trader may lose a lot of money.
The goals of a trader differ from that of an investor. An investor puts his money in buying financial assets that has the potential of giving him/her high returns in the long run. On the other hand the trader looks at medium and short- term gains.
Trading in currency market
The currency market is the most fast-paced market among all types of financial markets. It is open24 hours 7 days a week. So, one can easily imagine how dedicated the trader in forex must be not only to reap profit but also to prevent disaster by being unmindful. As if the volatility of the currency market is not enough, the crypto currencies like Bitcoin (BTC), Ethereum (ETH) etc. have added a new dimension to trading.
Trading in Bitcoins
Trading cryptocurrencies like Bitcoin has gained popularity due to the massive profits that can be gained by an intelligent trader and also the advantage of trading in crypto-currency.
The major advantage of trading in Bitcoin is that there is no central bank, which can change its value at will. It is completely decentralized and it is not subject to geopolitical influences like inflation and interest rates. Trading in bitcoins can be done without taking into account global boundaries. As bitcoins are not controlled by banks and all transactions are recorded on the public network, the transaction cost is also low. Trading in cryptocurrencies like Bitcoin is safe for the trader as it operates in a well-regulated market, which ensures the security of the trader against fraudulent practices.
Trading Tips for the Beginner
The person venturing into currency trading must take well informed but small steps forward. At first he/she must identify a proper state-of-art technology driven trading platform, which provides all modern tools for making profitable decisions. The extremely volatile nature of trading in crypto currency demands that the trader should be able to access the market dynamics on the go. However, the obvious but one of the most useful trading tips is to use leverage trading with utmost care, as an error in assessment/ timely action may be catastrophic for the trader.